The majority of this upside is due to better DRAM ASP. Micron also expects the Inotera deal to close 6-Dec, and it should be immediately accretive to DRAM gross margin, EPS, and free cash flow. For FY17, we estimate the integration of Inotera could be accretive to GM by 200-300bps, EPS by 6-8% (assumes new funding of $2.5B in debt, $500M equity; $1B from balance sheet), and free cash flow by $250-400M.

FY17 EPS goes to $1.17 from $0.92 and the $24 price increases from $21.50.

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